PRCH Porch Group Inc - Ordinary Shares - Class A

$PRCH B. Riley analyst Timothy D'Agostino raised the firm's price target on Porch Group (PRCH) to $24 from $21 and keeps a Buy rating on the shares. Porch Group and Porch Insurance Reciprocal Exchange agreed to acquire Allied Trust's MGA, captive reinsurer, and insurance carrier for approximately $200M in total consideration, with the deal expected to close in 1Q27 and potentially positioning Porch for over $900M of Reciprocal Written Premium and $180M of adjusted EBITDA excluding Reciprocal in 2027, the analyst tells investors in a research note.

$PRCH The sell side clustered this week. Texas Capital upgraded to Strong Buy on Tuesday, then Cantor Fitzgerald raised its target to 20 from 18 on Friday. The stock finished up 5.8% at 17.42. The number behind the call is the reciprocal. Second-quarter reciprocal written premium hit 139.8 million, and that flow drove Porch adjusted EBITDA (excluding the reciprocal) up 150% to 39.1 million. Porch is not a balance-sheet insurer here. It runs the carrier as a reciprocal exchange and collects fees on the premium flowing through it, which is why premium growth translates so directly into EBITDA. Insurance Services revenue grew 38% to 92.9 million in the quarter, and the company raised guidance across the board. Net income attributable to Porch was 5.6 million, positive. Worth noting: Friday's 5.8% came on well-below-average volume, so this one has not exactly been chased yet.

$PRCH (Porch Group, home insurer) pays $75M cash, 63% of its $119.2M June 30 unrestricted cash and investments, plus $20M stock for Allied Trust's MGA and reinsurer. Porch-run, policyholder-owned Reciprocal pays $105M for the carrier: $55M cash at close, surplus-adjusted vs ~$60.2M, plus $50M over 12 months, payable in its PRCH shares; $200M total, subject to adjustment. Porch expects ~$25M non-GAAP Adjusted EBITDA (Excluding Reciprocal) in the first full year post-close, assuming planned portfolio optimization. Needs Texas OK; Q1 2027 close expected.

$PRCH Insiders selling like crazy. CFO has sold 2 million just this year so far. CEO has sold 12.6 million this year. Why buy when insiders are selling?